The Income Tax Department conducted major raids on Tuesday (21.01.2025), targeting the homes and offices of prominent Telugu film producers in Hyderabad. These raids targeted the producers of recent blockbuster movies, including Pushpa 2: The Rule and Game Changer due to alleged tax evasion.
Dil Raju (Venkata Ramana Reddy) is a well-known producer and distributor in Tollywood and owner of Sri Venkateswara Creations. He recently produced Game Changer, starring Ram Charan, and Sankranthiki Vasthunam, starring Venkatesh. He also serves as the chairman of the Telangana Film Development Corporation, appointed by the state government.
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Naveen Yerneni and Ravi Shankar Yalamanchili are founders of Mythri Movie Makers, one of the biggest production houses in Telugu cinema, and producers of the highly successful Pushpa 2: The Rule, featuring Allu Arjun. The raids also included searches at an unnamed online platform linked to the producers.
The raids carried out at eight locations in Hyderabad, included high-profile areas like Jubilee Hills and Banjara Hills. Officials searched offices, residences, and bank lockers belonging to the producers and their families. The operation involved verifying documents and examining financial transactions for suspected tax evasion.
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The targeted films have been major successes. Pushpa 2: The Rule grossed Rs. 1,734 crore globally since its release on December 5, 2024. Game Changer, released on January 10, 2025, earned Rs. 179 crore worldwide, and Sankranthiki Vasthunam collected Rs. 122 crore in India since its January 14 premiere. These massive revenues are under scrutiny for potential undisclosed income.
Mythri Movie Makers have faced scrutiny before with a 2023 investigation revealing alleged unauthorized foreign investments of Rs. 500 crore. Dil Raju, who also chairs the Telangana Film Development Corporation described the searches as routine. His wife, Vygha Reddy, confirmed that officials inspected their bank lockers and financial records.
The Income Tax Department has not yet issued a statement but industry experts believe the raids could have huge implications for financial practices in the Telugu film industry.
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